Displaying items by tag: Loss

Egypt: Suez Cement, a HeidelbergCement subsidiary has implemented of a 20% reduction in pay for members of the management committee and a 30% reduction in pay for the managing director in the second quarter of 2020. The cuts are intended as a ‘cost-saving measure’ in line with the company’s aim to reduce expenses. Suez Cement said, “During the last few years the Egyptian cement industry has been going through very challenging times caused by oversupply and a sustained decrease in the demand, and Suez Cement Group has posted negative results. The COVID-19 crisis has complicated market conditions, affecting demand and increasing our costs. Moreover, it has affected our main shareholder, HeidelbergCement. In many countries it has suffered complete shutdowns and it is currently enduring complications in most of the countries that is present.”

Suez Cement continues to employ all staff.

Malaysia: The Cement and Concrete Association of Malaysia (CCA) has praised the government’s decision to grant an exception to cement plants in order to allow production to resume in the third phase of the country’s lockdown, beginning on 28 April 2020. The Straits Times newspaper has reported that the current and previous stages of the lockdown have exacerbated the cement sector’s losses over the past two years.

The CCA said that the development ‘will have a multiplier effect on the economy.’ CCA chair Datuk Yeoh Soo Keng said that 100,000 jobs ‘depend either directly and indirectly on cement production,’ including many ‘in small and medium enterprises’ that will not survive the outbreak without it. “Cement is the fundamental building material of our country’s wealth,” he added. The CCA thanked the government for the ‘welcome reprieve’ and urged it to allow ‘related sectors to slowly and gradually resume operations, for the industry to effectively function.’

China: Shanshui Cement has said that it expects its first-quarter losses to rise year-on-year in 2020 due to coronavirus. ET Net News has reported that, though losses are normal in the quarter containing the winter shutdown, they are expected to have been greater than usual in 2020 due to decreased sales and delays to startup caused by the outbreak.

Egypt: Sinai Cement’s net loss in 2019 was US$28.1m, down by 44% year-on-year from US$50.2m in 2018. Arab Finance News reported that the company attributed the loss to accumulated effects of currency devaluation on imported fuel and to rises of electricity and oil prices.

Egypt: Germany-based HeidelbergCement subsidiary Suez Cement’s losses fell by 11% year-on-year to US$75.0m in 2019 from US$84.1m in 2018. Mubasher News has reported that sales also fell, by 13% to US$41m from US$0.47bn.

Suez Cement is seeking buyers for its 51% stake in Kuwait-based Hilal Cement.

Egypt: Alexandria Portland Cement has reduced its margin of loss by 40% year-on-year to US$15.2m in 2019 from US$25.3m in 2018.

Greece-based Titan Cement is the 89% owner of Alexandria Portland Cement via its subsidiary Alexandria Development Ltd.

Kenya: East African Portland Cement Company (EAPCC) has recorded losses of US$16.2m in 2019, up by 0.6% from US$16.1m in 2018, in spite of sales growth over the period of 8.0% year-on-year to US$14.7 from US$13.6m. Reuters has reported that the company will not be paying its shareholders.

Namibia: China-based West China Cement concluded a sale and purchase agreement for Germany-based Schwenk Zement subsidiary Schwenk Namibia for US$104m on 3 January 2020. The Nambian newspaper has reported that the deal is awaiting clearance from authorities. Schwenk Namibia holds a 70% stake in Ohorongo Cement. Singaporean authorities stopped the sale of Schwenk Namibia to Singaporean-based International Cement Group (ICG) in September 2019 due to the latter’s inability to cover the losses of the Namibian company.

Kenya: East Africa Portland Cement Company (EAPCC) has defaulted on contractual loan repayments to KCB Bank after auditors PricewaterhouseCoopers reported that the Kenyan company made a loss of US$28.0m in the twelve months to 30 June 2019, over which time it produced 0.3Mt of cement against an installed capacity of 1.3Mt/yr.

Egypt: Alexandria Portland Cement has sold a 15.9km² parcel of disused land in Ad Dakhila. Mubasher reports that the company, the losses of which increased by 29.5% year-on-year to US$10.3m in 2019, received US$1.93m from the sale.